nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2018‒08‒27
nine papers chosen by
Walter Frisch
Universität Wien

  1. Crowdsourced innovation: How community managers affect crowd activities By Hornuf, Lars; Jeworrek, Sabrina
  2. The Simple Empirics of Optimal Online Auctions By Dominic Coey; Bradley Larsen; Kane Sweeney; Caio Waisman
  3. Right Information at the Right Time: Time Value of Information Characteristics for Environmental Technology Adoption By Goodarzi, Shadi; Masini, Andrea; Aflaki, Sam
  4. Compilation of Experimental Price Indices Using Big Data and Machine Learning:A Comparative Analysis and Validity Verification of Quality Adjustments By Nobuhiro Abe; Kimiaki Shinozaki
  5. Government Decentralization Under Changing State Capacity: Experimental Evidence From Paraguay By Ernesto Dal Bó; Frederico Finan; Nicholas Y. Li; Laura Schechter
  6. Sticking to Your Plan: The Role of Present Bias for Credit Card Paydown By Theresa Kuchler; Michaela Pagel
  7. Employees’ Uses of Social Network Sites: Individualised Private and Professional Dimensions By Karine Roudaut; Nicolas Jullien
  8. Should the Government Subsidize Innovation or Automation? By Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi; Liao, Chih-Hsing
  9. Decision Theory Made Relevant: Between the Software and the Shrink By Gilboa, Itzhak; Rouziou, Maria; Sibony, Olivier

  1. By: Hornuf, Lars; Jeworrek, Sabrina
    Abstract: In this study, we investigate whether and to what extent community managers in online collaborative communities can stimulate crowd activities through their engagement. Using a novel data set of 22 large online idea crowdsourcing campaigns, we find that active engagement of community managers positively affects crowd activities in an inverted U-shaped manner. Moreover, we evidence that intellectual stimulation by managers increases community participation, while individual consideration of users has no impact on user activities. Finally, the data reveal that community manager activities that require more effort, such as media file uploads instead of simple written comments, have a larger effect on crowd participation.
    Keywords: crowdsourcing,open innovation,crowdsourced innovation,crowdworking,ideation,managerial attention
    JEL: J21 J22 L86 M21 M54 O31
    Date: 2018
  2. By: Dominic Coey; Bradley Larsen; Kane Sweeney; Caio Waisman
    Abstract: We study reserve prices computed to maximize the expected profit of the seller based on historical observations of incomplete bid data typically available to the auction designer in online auctions for advertising or e-commerce. This direct approach to computing reserve prices circumvents the need to fully recover distributions of bidder valuations. We derive asymptotic results and also provide a new bound, based on the empirical Rademacher complexity, for the number of historical auction observations needed in order for revenue under the estimated reserve price to approximate revenue under the optimal reserve arbitrarily closely. This simple approach to estimating reserves may be particularly useful for auction design in Big Data settings, where traditional empirical auctions methods may be costly to implement. We illustrate the approach with e-commerce auction data from eBay. We also demonstrate how this idea can be extended to estimate all objects necessary to implement the Myerson (1981) optimal auction.
    JEL: C10 D44 L10
    Date: 2018–06
  3. By: Goodarzi, Shadi; Masini, Andrea; Aflaki, Sam
    Abstract: We examine empirically how different information types and information channels affect both the intention and the decision to adopt photovoltaic (PV) technology as affected by adoption stage. Analyzing data on a large European utility’s current and potential clients reveals how the effects of various drivers of adoption can change across phases of the adoption process. Our results challenge the common wisdom that information necessarily and homogeneously supports innovation adoption; instead, they strongly support the hypothesis that information types and channels have distinct effects on adoption rates. These results also highlight that, throughout the adoption process, the value of information changes. In addition, we clarify the effects of economic incentives on both the intention to adopt PV technology and actual adoption behavior. Our findings have critical implications for policy makers and for any technology manufacturing company that must optimize its marketing strategy and distribution channels to promote renewable energy systems.
    Keywords: innovation adoption; renewable energy; information characteristics; empirical studies
    JEL: D83
    Date: 2018–04–18
  4. By: Nobuhiro Abe (Bank of Japan); Kimiaki Shinozaki (Bank of Japan)
    Abstract: This paper compiles experimental price indices for 20 home electrical appliances and digital consumer electronic products using big data obtained from, the largest price comparison website in Japan, and a machine-learning algorithm which pairs legacy and successor products with high precision. In so doing, authors examine the validity of quality adjustment methods by performing comparative analyses on the difference these methods have on price indices. Findings from the analyses are as follows: Indices applied with the Webscraped Prices Comparison Method--the quality adjustment method newly developed and introduced by the Bank of Japan--are more cost-effective than those applied with the Hedonic Regression Method which is known to possess high accuracy in index creation. Indices applied with the Matched-Model Method, which is frequently applied to price indices using big data is unable to precisely reflect price increases intended to ensure the profitability often seen in home electronics at time of product turnover. This indicates the significant downward bias in price indices. These findings once again highlight the importance of selecting the appropriate quality adjustment method when compiling price indices.
    Keywords: price index; quality adjustment method; hedonic approach; support vector machine
    JEL: C43 C45 E31
    Date: 2018–08–20
  5. By: Ernesto Dal Bó; Frederico Finan; Nicholas Y. Li; Laura Schechter
    Abstract: Standard models of hierarchy assume that agents and middle managers are better informed than principals about how to implement a particular task. We estimate the value of the informational advantage held by supervisors (middle managers) when ministerial leadership (the principal) introduced a new monitoring technology aimed at improving the performance of agricultural extension agents (AEAs) in rural Paraguay. Our approach employs a novel experimental design that, before randomization of treatment, elicited from supervisors which AEAs they believed should be prioritized for treatment. We find that supervisors did have valuable information—they prioritized AEAs who would be more responsive to the monitoring treatment. We develop a model of monitoring under different allocation rules and rollout scales (i.e., the share of AEAs to receive treatment). We semi-parametrically estimate marginal treatment effects (MTEs) to demonstrate that the value of information and the benefits to decentralizing treatment decisions depend crucially on the sophistication of the principal and on the scale of rollout.
    JEL: D02 D04 D23 D61 D73 D78 D82 H11 H43 J45 O22 Q28
    Date: 2018–08
  6. By: Theresa Kuchler; Michaela Pagel
    Abstract: Using high-frequency transaction-level income, spending, balances, and credit limits data from an online financial service, we show that many consumers fail to stick to their self-set debt paydown plans and argue that this behavior is best explained by a model of present bias. Theoretically, we show that (i) a present-biased agent's sensitivity of consumption spending to paycheck receipt reflects his or her short-run impatience and that (ii) this sensitivity varies with available resources only for agents who are aware (sophisticated) rather than unaware (naive) of their future impatience. In turn, we classify users in our data accordingly. Consistent with present bias, we find that (i) sophisticated users' average paydown falls with higher measured impatience and that (ii) their planned paydown is more predictive of actual paydown than that of naives. We are the first to provide a theoretically-founded empirical methodology to measure sophistication and naivete from spending and income data and to validate this measure using our information on planned versus actual debt paydown. Moreover, our results highlight the importance of distinguishing between sophisticated and naive present-biased individuals in understanding their financial decision making.
    JEL: D03 D14 G02
    Date: 2018–08
  7. By: Karine Roudaut (MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UBS - Université de Bretagne Sud - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire, ARENES - Centre de Recherches sur l'Action Politique en Europe - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - Institut d'Études Politiques [IEP] - Rennes - EHESP - École des Hautes Études en Santé Publique [EHESP] - CNRS - Centre National de la Recherche Scientifique); Nicolas Jullien (LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire, MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UBS - Université de Bretagne Sud - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire)
    Abstract: This article addresses the question of employees' perceived usefulness of social networking sites in their professional activity. The quantitative and qualitative survey conducted in a large French company from the ICT sector, shows a low level professional use of online social sites. We identify two types of users, associated with types of use and types of networks. If the users creates the usage, it is individualized and disaffiliated from the company
    Abstract: Cet article sur les usages des outils de réseau social par les salariés s'inscrit dans une tradition de recherche sur les effets de la technologie sur le travail, sur l'évolution des frontières vie privée et vie professionnelle. Il questionne la façon dont ils gèrent leurs identités (privée, publique, professionnelle, personnelle). Menée dans une grande entreprise française du secteur des TIC, l'enquête - quantitative et qualitative - souligne premièrement, l'existence d'une conscience forte du caractère professionnel et privé de ces outils ; deuxièmement, un usage spécifique des plateformes : une tentative de cloisonnement. Le mélange des usages des outils est à l'image de l'entrelacement des sociabilités dans la vie hors ligne.
    Keywords: social network sites,professional activities,privacy,public/private life,sociology,Usages des TICS,Sociologie,Réseaux sociaux,Activité professionnelle,Vie privée,Vie publique
    Date: 2017
  8. By: Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi; Liao, Chih-Hsing
    Abstract: This study introduces automation into a Schumpeterian model to explore the different effects of R&D and automation subsidies. R&D subsidy increases innovation and decreases the share of automated industries with an overall inverted-U effect on economic growth. Automation subsidy decreases innovation and increases the share of automated industries also with an inverted-U effect on growth. Calibrating the model to US data, we find that the current level of R&D (automation) subsidy is above (below) the growth-maximizing level. Simulating transition dynamics, we find that changing R&D (automation) subsidy to its growth-maximizing level causes a welfare gain of 3.8% increase in consumption.
    Keywords: automation, innovation, economic growth
    JEL: O3 O4
    Date: 2018–08
  9. By: Gilboa, Itzhak; Rouziou, Maria; Sibony, Olivier
    Abstract: Decision theory offers a formal approach to decision making, which is often viewed and taught as the rational way to approach managerial decisions. Half a century ago it generated high hopes of capturing and perhaps replacing intuition, and providing the “right” answer in practically all managerial situations. Today it seems fair to say that decision theory has not lived up to these expectations. Behavioral science provides ample evidence that managers fail to follow the dicta of decision theory, even when these are explained to them. As a result, executives often find decision theory frustrating and useless and prefer to rely on their intuition. This paper suggests that this extreme conclusion is unwarranted and calls for a re-appraisal of decision theory. We propose that it should not always be regarded as a mathematical tool that produces the answer; rather, it can be viewed as a framework for a dialog between the decision maker and the decision theorist. In one extreme, the decision theorist studies the problem and provides the “correct’’ answer. But in another, the decision theorist only challenges the decision maker’s intuition and logic. In between, a whole gamut of possible dialogs exists, in which decision theory doesn’t replace intuition, but supports and refines it.
    Keywords: decision theory; decision maker’s intuition
    JEL: A10
    Date: 2018–01–01

This nep-ict issue is ©2018 by Walter Frisch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.